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nit f Paper I .f .rne ZOOS

*:l
6.
I
rl
I
I
'fhe
nrission statement of an organization
IIEST dcfines thc organization's
(A) tactrcal ohjectrres
(B) srrategicob_ir:ctives
{C) ogxrationalobje'r.:tives
( D) specifrc and quantifiable objectives
Which ol'the f6lllrra'ing is LtrASl likely to
contribute to u'cononries of scale'?
(A ) Finance
iRi \larkcting
(Ci Tcchnology
(D) Compctition
ln
,rvhich
of thc follorving levels ofprodr-rction
r"'or.rld bottling * ater tall-1
(A) Prirnary
(ts) l.cniary
((:) Sccondary
(D) Subsistencc
A N4AJOII disadvantage of multi-national
llrrporations to thc hosl countn is
(A) irrcrcascd taxation
(B) irtcrease irl imporls
i(') repatriation of
J:rofits
(l)) in(:rc.rsedprodr-rclioncosts
Whrch of'thc lirllowing is N()T a criterton
used to measure the grov"th and size of a
iinrr'.)
(A) Orrtput
(lJ) Labour force
t(:I lvlarket share
( D) Salary increase
The terrn limitcti liability in busincss rneans
that shareholders
{n ) do not tlisclosc inforlratir:n to
outsiders
have limited confol of management
of the brrsiness
are liable forall dcbts incurred by the
(B)
(c)
business
(D) are not liable for the rlcbts t-rf the
cr)r-npany beyond rhc valuc oltheir
sharcs
7. A finn practises ethical behaviour rvhen rt
3.
(A)
(fl)
(c)
(I))
(A)
iB)
(c)
(D)
(A)
(B)
(c)
{lr)
dclays
Jraying
its suppltcr in orrlcr to
irnprove its liquidiry positron
places more emphasis on strcial
responsibil ities over pro fi ts
recalls a s;recitic batch ot proclucts
because ol'flarvs in ir ILs'
pays large salaries to its cxecutives
tluring a redundancv exercise
prtrvide ernplolrnenl
obtar n nc\a, technr:logv
tulfil srrcial responsibility
redr-rce overall operating costs
prot'it maximization
econornicti of scale
e{.:onomic rvellness
good x,ill of thc firm
L I'irms ber:orne multinationals MATNLY to
/
C'l
1
a
9. The benelits u'hich many large lirrns enjoy
ovcr strallcr firms arc ref'errcd to as
906-4493 , 968-8427
t3 t0. Which of the tbllowrng are bene fits of
globalization to the host country?
i.
tl.
III,
IV,
Increased enrployrttent
Inrpnrventents in balance oi' trade
Improvements in balancc o{'
paymcnts
lncrease in consumers' choices ctl
gouls
(Ai I only
(B) ll and lll only
(C) II. III aud lV only
(D) l,lt.lll and lV
I'hc
-()n-(
ola' soli cirink company has bccn
ablc'to linanctr ncrv prrrduct tlcve:lopmcnt. In
rvhich ofthe follog.ing departnrcnts has the
compan). bcncti tcd fiorn cconorn i c's o t sca Ie'.)
(A) l:inance
(B) i\{arketing
(C) Purchasing
(D) Rcscarch and l)evcloplncnt
'lhc
introduction of thc USN,IL has providcd
numcrous opportunitics to
(.laribbcan
Icrlitoncs including
I.
II.
ru.
lv.
(A)
(B)
(cl
)
(D)
rcpaylrcnt of tbrcign debt
removal of trade barriers
iiee movement of iabr-rur
liee rnovement o1' capital
I and II only
I and IV only
l, ll and lll only
I, II III and lV
Caribbean countries are plagued with the
problenr ofskilled persons leaving their shores.
\\ftich oi'thc lollou'ing BEST iilustratcs a
benelit ol'this'brain drain' to the Caribbean?
(A)
(Bi
(()
(D)
A reducrion in imports
A retluction in training cost
A positive elltct on the balance ol'
par.Tnents
An increase in tradc among
neigltbounng le rri tories
14 BKF I'ashitxs Ltd rvishes to increase its
sales ancl markel share. lt decides to
underLake u ne* nrarketing campaign. The
dcc:rsirrn trcc bclow shou.s the t$() options
availablc lo
(he
compan),.
t2
Whar is lhc probabilitv of succcss for
(
arnpaign I)'l
(/\
)
0.1
(B) 0.2
(c) 0.4
(D) 0.6
;ffi:
906-4493, 968-842'l I
l9 l5
2t)
r6
The manager ol'Promotions Plus' believes
in using all the time available to enhance
productions wrthin the organization. .4s a
result hs tries to rcach intermcdiate
settlcments on cr]mpler issues rvithin the
shortcst prrtsible time. \trr'trich of the fbllorving
stra:egics is he rising to manage conflict r+ithin
the crrganization?
{A) Smoothilg
( Bl C'ornprornise
(C) Collaboraiiorl
( l)) Conliontation
A shop stcward is an ol'tfcial nrsnrber of
(A) a trade union
(B) a credit unir:n
(C') ancrrkers'council
(D) an ernpl<l5crs' associaLirrn
The N{AI5l objectives nf conrinrrorrs stafl
appraisal are tcr
[. irnpnrl'e efllciencv
IL identityu-ainrngneds
III. identi$ areas of u'eakr,ess
IV. anrive at u,agc paytnent rales
(A) . il and lV ot.tly
(ts) l. Il and IV onlv
(C) l. lll and IV onl-v
(
I )) tI, ITI and IV orrlv
Which of the tbllo*'ing is a non-financial
rerr,,ard?
(A) (iain
sharing
(D) Job enriclunent
(C') I-r.rnrp-sumtrelnus
( t) ) Ilnrployees stock orvnership plan.
One fcature cll thc patemalistic lcadership
style is that
(A)
(B)
(ct)
(D)
l-h* IVIAIN puqxrse ol
is !o show the
marlagers do wlrat lhcy thrnk is bcst
for the workers
rvorkers are only given lim itcd
intbrmation ahout tlre trusinc-ss
workers are given in[irrmation abtiut
the business to allow ftrll sta{T
involvemcnt
managers ds:legate vrrtual l-v., al!
authority and decision nraking
po\\,efs
a.n 0rgalliratir)Ir:rl c.hart
{A)
(B)
krcrticrn clf irs dcpartrneilts
typc of r,r,ork to be carried out b;'
E.lton Ma.vo
Max Weber
Frctlerick Taylor
Dorrglas Mc(iregor
Employees are ernpo*,ered to make
decisions,
Decisicu-nrakirrg lies rvithin thc
upJrr levels of tlre orgalization.
Aritor:on:f is given to rhose at the
lorvcr levels.
Managers clulcgatc tasks to the
pcriphery..
t7
cmployecs
(C') order in rvhich the work should be
can'icd orrt
(D) lincs of authority and levels o1"
hicrarchv in an organization
Which of the lbllou,ing theorists is kn.rrvll as
thc 'F:lther ol Scientific Managernent'?
2l
'.,
(r\)
(B)
tc)
{D)
l8
Which of the follorving stat.emcnts Bf:ST
describcs a teature ol- ccntralized
organization?
(A)
(B)
(c)
(D)
AlAa
"'JFfl;
C^RIBBEAN'NTERNANONAL COI.EGE
906-4493, 96A-a42?
23
t&?rich
ofthe lirllou,ing is L[iAST likely to be
the objectives of an apprajsl
systsm?
(A)
'lb
encourage and suppon planned
char:ges withing the titm
(B ) To consider the der.eiopment
of.rhc
individual's career
((:) To recognise the tuturc needs of'the
indrr"idual
(t)) Io identity errployees
in rhe
organization who have potentiai
for advancenrcnt
When entplol.ees are allovvcd to develop and
carry our plans rvitJr high levcls of cflirn- rhcv
are applying Fayol's principlc
ol'
i A ) initiatir.c
{R) aurhoriry
(C)
discitrrline
( D ) unity of dircction
Which of rVlaslow,'s hierarchl.of neerls would
an organization be satistying
if ir provides its
rvorkers u'ith pension plaoslt
{A)
(B)
{C)
{D)
Social
Securitr'
Self-esteem
Phr,siologicll
27. Ernployces in Company
.A,are
told to come
to work and
jirllorv
the inlitructions that ars
given. Which leadership style is being
practised?
(A) Directive
( tsi Parcrnalisric
(C) Laissez-Faire
(D)
Consritutional
.{l
',vhich level ol l\iaslow's hicrarchv of
needs would
'open
and honest c()mmuni.itinn
among cmployees' be applic.ablel)
/ (A) . Strcral
( B.) Sat-ety-
(C)
Esteem
(Dl
Self-actualization
lhc
'systern
approach' applres tsEST to
nlanagenent
because it
(A)
cncouragcs all the othcr theories of
managem-ent
(ts) places ernphasis on tlrtr classic:al
approach
iC'1
(D)
eurphasizes the humanistic approach
sccs management is a r:oniinuorrs
flovr bet',r'ecn tunctrons or
depafirnents
A head rtttice rvanG the local buildins srrcieties
to clrange nrongage interest rates.
-Which
of
tl rc lirlh twinc cortrmun ical.ion ne{w orks wrrultl
be ll{05-l suitable tbr senrJing rhis type ol-
rresslge?
( ,\,
Reporr
( ts) Ielcphone
((' ) Notice board
( I) ) lVlcrrrrlrandum
28
1
il
ri
21
29
25.
26 Which ol- tlre tirlkrr+.ing
t\,|()S1' suitable fbr an
llexiblc pcrson?
(4, r\utocratic
(B) Dcmocratic
(C) I)atcrnalistic
( D) Constitutional
lcadcrship
swles ls
experienced
and
30
T
j
6A
-&se'l%-,*
;6;%;:l^fitff;=,
{
i
'l
3t. Which of tbe following BST defines a
debenture?
(A) .A bank loan
'*.ith
a frxed rnterest rate
( B) A long-teml loan rvith a l-xed interest
(c)
rate
A long-term loan u,itlr a variable
interest rate
(D)
A shon-term loan with pri.ncipal pard
at maturit_v dale
Working capital is oftcn dcscribed as the
.life
blood of a busincss'. Which of thc l'ollorving
options BL.S'I' describcs proper rnanagemetrt
ofworking capital?
(A) Increased stock lcvrrl
(ts)
lmproved cash [low, forecasts
(C) Increased credrt to purchosers
(D) Impror.ed research and developmcnt
A type ol'external finance w,hich ol'lers
flexibitity and the ab'ility to access tuncls
.over
and abovc' bank balances is krrorvn as
(A) lcasrng
(R) overdratt
(C) rrade credit
(D)
standing order
Proiitablc firrns have cashllow problcms
bccause
(.A) outstanding accorutts rcccivables are
(ts)
(c)
(ll)
trxrhigh
pavments to
delayed
discourrts are
pu_\ment
shareholders
divrdends
trade suppliers are
given for pr()mp(
demand proposed
35.
32 Which of the tbllorving are
used to finance a businessl]
I. lssuin-g shares
IT. Bank overdraft
III. Retained profits
lV. Sale and leaseback
intemal sources
(A)
(B)
(c)
(D)
I and III only
I and lV only
III and IV only
I, III and .IV only
An example of an brangible asset is
(,A
) cash
( rl
) debtors
((l) gtxxl$ill
( D) mr>tor vehicle
'l
he 1'l IRLI main components of a cash llow
slitlcment ilre
(r\) oJrcratirrg activitics. invcsting
ac t i r' i tics, f-unds tlow.
(tJ) ()l)L:ratrng
activities. financing
ucrir,i ties. issuing shares
( (-
) rssuitrg sharcs. tunds t'l<rw., Iinanr-inEr
uclr vrtics
(l))
opurutln!: activrties, invcsting
tct rvities, linancing activitics
36
31
3f,
:14
)
906-4493
, 968-8427
6
ltcm 38 ret'ers to rhc graph
illustrates the net present
investmcnt proiecr-
Which of the follou ing accourrting conccpts
includes an unpard bill in the profit and loss
acc0unt'-)
below rvhich
values of an
.10
4t
e
7-
20 000
r0 000
5 00{}
(s o00)
Oiscount Rate {?ir)
The disc{)unt ratc :rt rvhich the I.R.R, occurs
ls
(A) 5
o/o
(Bi lo
0.6
((r) l5'.'.r
(D) t7 e4
Edu ard ,lorres decirled to slart a sole
proprietoruhip
in autourobilc r.cpairs. ln ordur
fo be cornpctitivc hc $ ill har,c to invcst in thc
nlust currerlt teclrnologlr. Which of the
lirllon.inu rs rhe lv1( )S l nppr()prtat \rlrlrce (rl'
flnance lbr Edward?
(A) Accrual
(B) Prudcnce /
i(:) llouble enly
aD) (ioing
conccm
Rock Sreel
(,ornpany
is a snrall pri\,are
conlpanv trying to s()urcc long_term
investmerrt f-unds ro tinencc operattons.
\A:hich ot-rhe follox'ing rKruld bc rhe IIHST
source of funding?
(A) Sharc issr-tc
(B) ()lvner
financc
tC) Bank overdrai
( D) Venture capiral
Philbcn }{ardu arc is finding ir diftictrh to nlcct
their slrort-terrn pa!'nlcnts- Thc firrt can
nralrRge rhis situarron by r.rrilizrng all of tlre
lirllow ing tochniqucs g.XCLp'I-
(A) increasingdebtordays
( B ) irrcrea-sirrg credit ptrrchases
(C)
selling tnore on a cash basis
( D ) entsring ovcrdralt ararrgcments rvith
tranks
ltr-rn 'llrclcrs lo thc fbll(ru'ig tablc rvhich
sholvS an cxrr-acrt liol)r thu bcrols of
pB's
Ltcl.
Ncl infl crrr tionr operation
Ta.ration paid
sl2 000
Pavment of {-r-red asset
Share issue
The closing cash balancc is
(A) $ 2 00()
tB) $ 26 000
(cr)
$ 2t3 O0o
(D) $ 40 000
42
-18
39
{A)
(ll)
(c)
(D)
Bank Ioan
Share issrrc
Dcbcntures
Rctaincd eamings
{3
905-4493 , 968-8421
44. A motor vehicle with a cost price of $20 000
and a scrap value of $4 000 will be used in a
business for 4 years. What is the yearly
depreciation of the motor vehicle if the
straight-line nrethod is used?
Item 45 refers to the follorviag lable which
shows an extract tiom the books of North
Star Co. Ltd.
-
-
--l
$;
I
(A)
(B)
(c)
(D)
s4000
s4 s00
s.5 0{}0
s5 500
Sales
Opening stock
furdrases
Closing Stock
2,1 5U)
9 000
r5 000
I 700
45. The gross profir of North Star Co. Ltd is
(A) $ 250
(B)
S 7 000
(c) $ 7 zsa
(D)
Sl2 500
$